Pen or PIN – the choice is here

 

What is Pen or PIN?

 

From 4 June 2008, cardholders in Australia will be able to make VISA, MasterCard, American Express and Diners Club credit or charge card purchases by using a pen (signature) or entering their PIN (Personal Identification Number).

 

The PIN is simply an alternative method of authorising card payments. Australian debit cardholders already use a PIN to authenticate transactions at EFTPOS terminals and using a PIN on credit and charge card transactions will operate in the same way.

 

Commonwealth Bank EFTPOS terminals will support PIN on credit and charge card transactions.

 

Find out more below, or click here to download an information brochure.

 

How does it work?

 

Currently, the customer presses the “OK” button, after selecting “Credit” for a credit card or charge card payment, and then signs the merchant receipt. This process remains the same if the customer chooses to sign.

 

From 4 June 2008, a customer can choose to use a PIN instead of signing for the transaction. To do this, they simply select “Credit” then enter their PIN and press “OK”.

 

With a PIN, you don’t need to verify the signature on the back of the card. It is the same as using a debit card PIN, and your terminal will display “APPROVED – 00” instead of “SIGNATURE REQUIRED”.

 

Which cards can I accept a PIN on?

 

Your EFTPOS terminal will be able to accept PINs for MasterCard, Visa, American Express and Diners credit and charge cards issued in Australia.  As a general rule, international credit and charge cardholders will also be able to use their PIN here in Australia.

 

What are the benefits?

 

The PIN provides an alternative method of verifying cardholder authenticity. As the credit and charge card PIN authorisation process mirrors the current debit card process, there are no complicated new instructions to learn. The PIN also enhances security, leading to a reduction in disputes, fraud and chargebacks.

 

PIN authorisation is quick, simple and safe, offering choice and control to your customers.

 

What do I need to do?

 

All Commonwealth Bank EFTPOS terminals will be able to support PIN for credit and charge card transactions by 4 June; no terminal upgrade or swap out will be required.

 

All you have to do is make sure that from 4 June, you and your staff ask your credit and charge card customers to decide whether to input a PIN or press “OK” and sign. This will ensure that your customers are aware of the new way to validate their transactions.

 

What are the steps to process a credit or charge card transaction using a PIN?

 

To process a credit or charge card transaction with a PIN, follow these simple steps:

Step 1 :  Swipe the credit or charge card.

Step 2 :  Select “Credit”.

Step 3 :  Offer the customer the choice of PIN or press “OK” (for signature).

Step 4 :  If they select PIN, give the customer access to your terminal so that they can enter their PIN.

Step 5 :  If PIN verification is successful and the transaction is approved, complete the transaction and hand the receipt to the customer.

Step 6 :  If PIN verification is unsuccessful, the customer can attempt to re-enter their PIN. Alternatively, start a new transaction by swiping the card and process as a signature-based transaction by pressing the “OK” button.

Are there any changes to transaction response codes?

 

Once the PIN or signature transaction has been processed you may see one of the following responses on your terminal screen:

 

Successful PIN verification

“00 – Approved”
PIN accepted, no signature required.

 

Unsuccessful PIN verification

You may see one of the following responses:

“55 – Invalid PIN”
The customer may try their PIN again, or re-swipe the card and process the new transaction as a signature‑based transaction. 

You may suggest to the customer that they contact their card issuing bank if they continue to get this response.

“75 – Exceed Number of PIN Tries”
The customer may re-swipe their card and process the transaction as a signature‑based transaction. 

You may suggest to the customer that they contact their card issuing bank regarding their PIN.

 

Successful Signature verification

“08 – Approve with Signature”
The cardholder needs to sign the merchant receipt to complete the transaction (as happens today).

 

For any other response codes for either PIN or signature transactions please refer to your Terminal Operator Guide.

 

Other frequently asked questions

 

How will the introduction of PIN on credit and charge cards change my procedures?

What happens if a customer does not have a PIN or does not know their PIN?

What do I do if my EFTPOS terminal is off-line and cannot reach the Bank?

How do I process a refund transaction?

How do I process a damaged card transaction?

What do I need to do for Mail Order or Telephone Order (MOTO) transactions?

What do I do if a customer disputes a credit or charge card transaction where a PIN was accepted?

Are there any additional costs involved for merchants or customers?

           

How will the introduction of PIN on credit and charge cards change my procedures?

 

It gives your customer the choice between using a pen or PIN. When the “Credit” button is pressed, all you need to do is ask the cardholder if they prefer to sign the sales receipt or enter their PIN.

 

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What happens if a customer does not have a PIN or does not know their PIN?

 

They can simply press the “OK” button and sign for their purchase. To obtain a new PIN, they should contact their bank.

Commonwealth Bank customers can call 13 2221 or visit their nearest branch for assistance.

 

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What do I do if my EFTPOS terminal is off-line and cannot reach the Bank?

 

Occasionally, the credit or charge card transaction may be declined because the terminal is not able to reach the Bank. In this instance PIN acceptance will be unavailable and the standard downtime process outlined in your Terminal Operator Guide will apply; transactions under your merchant floor limit can continue to be processed either in store and forward mode or using offline vouchers. For credit card transactions under your merchant floor limit, contact the relevant Authorisation Help Desk to get authorisation.

 

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How do I process a refund transaction?

 

There will be no change to the current process, any refund transaction processed at a terminal using a credit or charge card should continue to be processed as a signature-based transaction.

 

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How do I process a damaged card transaction?

 

There will be no change to the current process, any damaged card transaction manually processed at a terminal using a credit or charge card should continue to be processed as a signature-based transaction.

 

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What do I need to do for Mail Order or Telephone Order (MOTO) transactions?

 

There will be no change to the current process for card not present transactions on credit or charge cards. The PIN option is not available for mail or telephone orders.

 

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What do I do if a customer disputes a credit or charge card transaction where a PIN was accepted?

 

If a cardholder disputes a transaction, you should refer them to their credit or charge card issuing bank for further assistance.

 

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Are there any additional costs involved for merchants or customers?

 

There are no additional costs associated with accepting PIN on credit and charge card transactions.

 

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Like to know more?

• Please contact the Commonwealth Bank Merchant Enquiries team on 1800 230 177 if you have any queries. 
• A nationwide education program has been launched. Visit the official Australian Pen or PIN website.